At the beginning of the current period, Skysong Corp. had balances in Accounts Receivable of $190,400 and in Allowance for Doubtful Accounts of $9,040 (credit). During the period, it had net credit sales of $839,100 and collections of $760,090. It wrote off as uncollectible accounts receivable of $6,576. However, a $3,350 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,900 at the end of the period. (Omit cost of goods sold entries.) (a)Prepare the entries to record sales and collections during the period.(b)Prepare the entry to record the write-off of uncollectible accounts during the period.(c)Prepare the entries to record the recovery of the uncollectible account during the period.(d)Prepare the entry to record bad debt expense for the period. No. Account Titles and Explanation Debit Credit (a) Enter an account title to record sales Enter a debit amount Enter a credit amount Enter an account title to record sales Enter a debit amount Enter a credit amount (To record sales) Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount (To record cash received) (b) Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount (c) Enter an account title to reinstate account previously written off Enter a debit amount Enter a credit amount Enter an account title to reinstate account previously written off Enter a debit amount Enter a credit amount (To reinstate account previously written off) Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount (To record cash received) (d) Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. Ending balance in Accounts Receivable $Enter a dollar amount Ending balance in Allowance for Doubtful Accounts $Enter a dollar amount
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
At the beginning of the current period, Skysong Corp. had balances in
(a)Prepare the entries to record sales and collections during the period.(b)Prepare the entry to record the write-off of uncollectible accounts during the period.(c)Prepare the entries to record the recovery of the uncollectible account during the period.(d)Prepare the entry to record
|
No.
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|---|---|---|
|
(a)
|
Enter an account title to record sales
|
Enter a debit amount
|
Enter a credit amount
|
|
Enter an account title to record sales
|
Enter a debit amount
|
Enter a credit amount
|
|
|
(To record sales)
|
|||
|
Enter an account title
|
Enter a debit amount
|
Enter a credit amount
|
|
|
Enter an account title
|
Enter a debit amount
|
Enter a credit amount
|
|
|
(To record cash received)
|
|||
|
(b)
|
Enter an account title
|
Enter a debit amount
|
Enter a credit amount
|
|
Enter an account title
|
Enter a debit amount
|
Enter a credit amount
|
|
|
(c)
|
Enter an account title to reinstate account previously written off
|
Enter a debit amount
|
Enter a credit amount
|
|
Enter an account title to reinstate account previously written off
|
Enter a debit amount
|
Enter a credit amount
|
|
|
(To reinstate account previously written off)
|
|||
|
Enter an account title
|
Enter a debit amount
|
Enter a credit amount
|
|
|
Enter an account title
|
Enter a debit amount
|
Enter a credit amount
|
|
|
(To record cash received)
|
|||
|
(d)
|
Enter an account title
|
Enter a debit amount
|
Enter a credit amount
|
|
Enter an account title
|
Enter a debit amount
|
Enter a credit amount
|
Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts.
|
Ending balance in Accounts Receivable
|
$Enter a dollar amount
|
|
|---|---|---|
|
Ending balance in Allowance for Doubtful Accounts
|
$Enter a dollar amount
|
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
